Credit card balance transfer explained

Balance transfer offers are where the credit-card debt is transferred to a zero- or low-interest-rate card.

That is not a solution to debt problems, but it buys time without having to pay interest, or not much interest, while working on reducing the debt.

These cards have a zero or low interest rate that applies for a limited time, typically six months or so, after which they revert to the purchase rate or the higher cash-advance rate.

The zero or low rate usually only applies to the balance that has been transferred from the old card, not to new purchases.

Source: The Age